Czech state debt up at Kc1,168bn at end-Sept

Per capita debt exceeds Kc111,000.

The state debt consists of the debts of the central government and is created above all by the accumulation of state budget deficits. It is financed by treasury bills, state bonds, direct loans and loans from the European Investment Bank (EIB), for example.

Internal debt grew by nearly Kc127bn to Kc941bn at end-Sept and external debt rose by Kc41.2bn to Kc226.7bn.

One of the reasons behind the debt growth are foreign issues of state bonds. At end-April, the ministry made a fourth public syndicated foreign bond issue for EUR1.5bn.

The government issued mid- and long-term bonds with nominal value of Kc32.4bn in Q3, their gross issue worth Kc177.3bn in the first three quarters of the year, with Kc33.4bn worth of bonds sold on the secondary market. Bond repurchases reached Kc13.5bn at end-Sept. Net state bond issue reached Kc125.9bn in Q1-Q3.

The Czech Finance Ministry wants to borrow Kc280bn next year, almost Kc306bn in 2011 and nearly Kc313bn in 2012, according to the ministry's state debt financing and management strategy for 2010. This year the ministry counts on borrowing Kc278.8bn.

Autor: ČTK
www.ctk.cz